Cautious Hold Rating for Co-Diagnostics Amid Financial Losses and Regulatory Uncertainties

Analyst Yi Chen from H.C. Wainwright reiterated a Hold rating on Co-Diagnostics (CODX – Research Report) and keeping the price target at $1.00.

Yi Chen’s rating is based on Co-Diagnostics’ recent financial performance and strategic developments. The company reported a net loss of $7.5 million in the first quarter of 2025, which was narrower than expected, but its revenue was only $50,000. This financial situation, combined with the withdrawal of their 510(k) application for the Co-Dx PCR COVID-19 test due to stability issues, suggests a cautious outlook.
Additionally, while the company is planning to initiate clinical evaluations for several tests and has made progress in its manufacturing capabilities, including a new facility in South Salt Lake and an upcoming one in India, these developments are not expected to yield immediate returns. The potential FDA clearance for their products is projected for 2026, which adds uncertainty to their near-term financial prospects. Therefore, Yi Chen has given his Hold rating due to a combination of these factors, including the need for additional capital and the risks associated with clinical evaluations and regulatory approvals.